Ola Electric has secured SEBI’s regulatory approval for its IPO and is expected to launch it in 2024.
The IPO is expected to raise a sustainable amount of capital for the company’s expansion plans. Although the exact date has not been announced yet, the company founder has indicated it will happen sometime in 2024.
Ola Electric is an Indian electric two-wheeler manufacturer, founded in 2017 as a subsidiary of Ola Cabs. The company’s flagship product is the Ola S1, an electric scooter available in various models and price points.
Ola Electric IPO is expected to include a fresh issue of Rs. 5,500 crore and an offer for sale (OFS) where existing shareholders will sell 95.19 million shares.
The Ola Electric IPO proceeds will be used for:
- Funding capital expenditure: This includes expanding the capacity of the subsidiary Ola Cell Technologies’ (OCT) cell manufacturing plant from 5 GWh to 6.4 GWh.
- Repaying borrowings: This is for borrowings obtained by OCT.
- Research and product development: This includes developing new electric vehicles technologies and products.
- Funding organic growth initiatives: This could include expanding into new markets or launching new services.
- Corporate general purposes: This could include working capital requirements and other general corporate expenses.
The IPO has reportedly garnered interest from several prominent investors, including SoftBank, Temasek, and Warburg Pincus.
Overall, Ola Electric has secured regulatory approval for its initial public offering (IPO) and is expected to launch it in 2024. Ola Electric is a significant player in the emerging electric Vehicles market in India. While it faces challenges, it also has the potential to play a crucial role in the country’s transition towards sustainable mobility.